The On-Site Inspection Of IPO Of "First Brother" Of Futures Industry Completed, And The Net Profit Of Yong'An Futures In 2020 Exceeded 1.1 Billion Yuan

The IPO of Yongan futures, the leading company in the futures industry, has made great progress again.

According to the exclusive understanding of the 21st century economic report, the IPO on-site inspection of Yong'an futures has been completed recently.

Yongan futures IPO road began last year. On May 27, 2020, Yong'an futures, which has been listed in the new third board market, formally submitted the listing guidance filing materials to Zhejiang securities regulatory bureau and was accepted. After six months of counseling, in December of the same year, the company passed the guidance acceptance of Zhejiang Bureau, and simultaneously submitted the application materials for listing on the main board of Shanghai Stock Exchange. However, in January 2021, the company received the notice of spot check on the information disclosure quality of the first listed enterprises issued by the Securities Industry Association. In view of the increasingly tightening IPO audit situation in 2021, whether Yong'an futures can "pass" the on-site inspection has been disturbing investors' nerves.

"After the on-site inspection is completed, the subsequent listing audit process of Yong'an futures may be accelerated. This year, due to on-site inspection and supervision of the withdrawal of materials to terminate the audit of enterprises everywhere, for investors, at this stage no news is good news. " There are senior investment banks in Beijing said.

In 2020, Yong'an futures once again won the top spot of futures companies. Visual China

Pass the inspection on site

The revenue is 25.469 billion yuan, and the net profit is 1.146 billion yuan. In 2020, Yong'an futures once again takes the lead in futures companies.

According to the incomplete statistics of 21st century economic report, among the futures companies that have disclosed the financial report data in 2020, Yong'an Futures Co., Ltd. ranks first in the industry in terms of operating income and net profit, and leaves the second place in the industry far behind.

From the perspective of operating income, Nanhua futures, the first listed futures company in A-share market, ranks second in the industry with a revenue of 9.915 billion yuan, but there is a gap of more than 15 billion yuan between its revenue scale and Yong'an futures, and the net profit of Nanhua futures in 2020 of 94.17 million yuan is less than one tenth of that of Yong'an futures.

Comparing the net profit of the whole industry in 2020, CITIC futures and chaos Tiancheng futures ranked second and third with 648 million yuan and 406 million yuan respectively, and there was a big gap with Yong'an futures.

"The industry's real head companies to join the army of listed companies is also a favorite for regulators to see." Some people in the futures industry think that. In 2019, Nanhua futures and Ruida futures successively achieved A-share listing, realizing the "zero breakthrough" of A-share listed futures companies. Although the two futures companies have their own characteristics, basically, the ranking above the middle reaches of the industry is obviously difficult to represent the development level of the industry. At present, Shanghai mid-term futures and Xinhu futures have also started the preparation of A-share listing, but compared with Yong'an futures, they are difficult to match.

Yongan futures completed the recognized "dangerous" IPO on-site inspection, which was considered by some market participants to release a more positive signal.

According to public information, building materials technology, which was selected together with Yong'an futures, submitted an application to withdraw its IPO and go public in March this year, and the listing road was terminated.

"From the point of view of the objects of the spot check, the supervision should have selected the two enterprises on purpose, which is no longer a random inspection. Building materials technology and Yong'an futures are in the two industries with the most stringent regulatory audit. " The senior investment bankers pointed out.

"Lagging behind" in asset management business development

Looking at the annual report data of Yong'an futures in 2020, the traditional futures brokerage business is still the most important "moat" for the company's performance.

In 2020, Yong'an futures achieved a total of 568 million yuan of commission fee income from futures brokerage business, with a year-on-year increase of 32.86%. However, with the intensification of homogeneous competition in the industry, it is more and more difficult for the traditional brokerage business to bring considerable profits to the futures companies. Taking Nanhua futures as an example, the average comprehensive handling rate of the company has dropped from 0.345% in 2018 to 0.248% in 2019.

"In fact, there are two main driving factors for the outbreak of futures business last year. One is the superposition of uncertain factors such as the new crown epidemic and Sino US trade friction. The fluctuation of commodity prices has intensified, and more industrial customers have the demand for hedging; the other is the entry of retail investors." There are Shanghai futures company executives said. According to wind data, in 2020, the precipitation fund of commodity futures market will exceed 210 billion yuan and the inflow amount will be 77 billion yuan, which is the highest inflow amount since the establishment of futures market, 39.6 billion yuan higher than that in 2019, the second largest inflow amount. "But it can't last.". The above Shanghai futures company executives clearly said.

For futures companies, brokerage business is the cornerstone of development, but it is hard to escape the influence of "watching the weather and eating". To achieve higher quality development, we need to rely on innovative business.

However, the impact of futures companies to innovate business is also obvious. Hu Yuyue, director of the securities and Futures Research Institute of Beijing Industrial and Commercial University, pointed out that in the past, futures companies were "futures brokerage companies". As light asset companies only engaged in brokerage business, they did not need to be listed. However, after the futures companies increased the innovative business of asset management and risk management, they began to change into asset heavy companies. Therefore, futures companies are seeking to meet the demand of capital replenishment through listing.

At present, the main innovative business of futures companies includes asset management and risk management. In the field of innovative business, what is the success of Yong'an futures?

In 2020, the operating income of Yongan futures asset management business will reach 47.55 million yuan. In contrast, the listed Nanhua futures will only record 2.94 million yuan in 2020 with a year-on-year increase of 184.17%, which is still in a loss state.

"The profitability of futures companies is limited, and many of them rely on brokerage business. Risk management subsidiaries and asset management business are in vain. Some futures companies have turned asset management and subsidiary business into a pool of renewal funds. Yongan's asset management scale and profitability are better than some securities companies. " In the interview, the head of the business department of a futures company affirmed the asset management business of Yong'an futures.

However, no matter from the revenue scale and industry ranking, the asset management business of Yong'an futures is still difficult to pick up the transformation beam, and its position in the industry is far less stable than the traditional business.

From the data of recent two years, Yongan futures asset management business performance fluctuates greatly. The company's asset management business revenue in 2019 is still 127 million yuan. According to the data of the prospectus, as of the end of June 2020, the company's asset management business management scale was 4.887 billion yuan, a decrease of 33% compared with the end of 2019. In contrast, the rapid catch-up of the industry's "younger brothers", chaos Tiancheng and Ruida futures have achieved an outbreak in asset management business in 2020. Among them, chaos Tiancheng achieved 256 million yuan of revenue from asset management business, with a year-on-year increase of 3667.69%, and Ruida futures achieved a business income of 99 million yuan, an increase of 398.08% compared with that of 2019.

Some people in the futures industry believe that the fluctuation of Yongan futures asset management business in recent years is probably due to the sequelae brought about by the change of senior executives. "The asset management business of Yong'an futures company originated from the idea of Shi Jianjun, the former general manager of the company. After Shi Jianjun left for private placement in 2017, the personnel changes of the company's asset management business in recent years have been great, and many business leaders have gone to other futures companies, which has an overall impact on the business." The futures industry said to reporters.

Unique advantages of risk management business

In contrast, Yong'an futures will develop more smoothly in the risk management business in 2020.

According to financial report data, in 2020, Yong'an futures realized 23.519 billion yuan of revenue from risk management business and 141 million yuan of operating profit, an increase of 39.6% year-on-year. In contrast, among the two listed futures companies, Ruida futures has only a revenue of 646 million yuan and an operating profit of about 16 million yuan. Nanhua futures has a revenue of 9.291 billion yuan and even a loss of about 13 million yuan.

According to a person from a futures company in Beijing, the futures risk management business is divided into three parts: OTC derivatives, basis trade and market making business. Among them, basis trade brings a lot of capital flow and expands the revenue of futures companies.

The people of the futures companies mentioned above said that the traders in the upstream and downstream of the industrial chain were short of liquidity, so the futures risk management subsidiary would advance the payment in advance, and the subsidiary would collect the corresponding margin and interest. Basis trading is that futures companies provide services to traders, not involving the goods, but participating in the whole process.

In addition, during the transportation of goods, traders are worried about the fluctuation of commodity prices. At this time, the risk management subsidiary can also do over-the-counter options and futures hedging business to generate more profits. "But this part of income cannot be compared with the flowing water generated by trade."

"For Yong'an futures, it is more through the basis of trade, to establish its voice in the price of some commodities." Yongan futures industry insiders said, "the more you do spot trade, the more you understand the inventory of the corresponding varieties, the more you have an advantage in pricing."

However, futures companies participate in the trade of upstream and downstream entities in the form of industrial chain financial services, accompanied by certain risks. "In case the entity defaults, the relevant goods can only be smashed in the hand." However, the background of the major shareholders of Yongan futures provides a lot of convenience for the risk management business of the company.

From the perspective of shareholder information, Yong'an futures is mainly held directly or indirectly by Zhejiang Financial Holding Co., Ltd. and Zhejiang Communications Investment Group Co., Ltd., and Zhongda, a listed company of Zhejiang communications investment group, also holds 2.1% equity of Yong'an futures. According to the public information, the core business of Zhongda is to provide integrated services such as raw material procurement, processing, distribution, export, logistics, finance and information for the upstream and downstream customers of the supply chain and industrial clusters.

"Yong'an futures has established a unique sales channel for bulk commodities through Zhongda. When it sets foot on the market, the default goods can even realize low purchase and high sale. The combination of sales and trading capabilities reduces the risk of related business of the company to the minimum." The above understanding of Yongan futures industry said.

However, although the sales and trading capacity of both, but Yong'an futures is still difficult to cope with systemic risks such as epidemic situation.

Yong'an futures said in its annual report that the impairment loss of other assets of the company in 2020 will reach 462 million yuan, an increase of 30.48% compared with the previous period, which is mainly due to the increase in the provision of inventory depreciation loss of energy and chemical products.

"In the first quarter of last year, Yong'an suffered a huge loss because of the impact of the epidemic situation and the sharp drop in international crude oil on the prices of energy and chemical products. Fortunately, all kinds of commodities fluctuate in different cycles, and the sharp rise in commodities will slow down. " Those close to Yongan futures said.